Home / World News / Cashed-up Westgold on track for 2023 gold output

Cashed-up Westgold on track for 2023 gold output

After a record-breaking June quarter, Westgold Resources has set itself a conservative but achievable target production guidance of between 240,000 and 260,000 gold ounces for the 2023 financial year.

The latest production target has been set against an all-in sustaining cost of between $1900 and $2100 per ounce that the company says is due to uncertainties created by the current inflationary environment and ongoing supply chain constraints.

At the end of the 2022 financial year Westgold delivered a record 270,884 gold ounces at an all-in sustaining cost of $1725 per ounce for the year to exceed its predicted production guidance of 270,000 gold ounces.

The final production figure was boosted by a record 72,597 ounces of gold at an all‐in sustaining cost of $1843 per ounce for the June quarter against an average achieved gold price of $2481.

Westgold predicts its 2023 financial year expenditure will drop as the company aims to monetise the large surface stockpiles accumulated over the past year.

It says plans to reset its operating model provides an opportunity to redeploy equipment and personnel into Westgold’s larger and more profitable mines.

We are proactively simplifying our operating model with the key being to make our biggest mines bigger and more profitable as cost inflation disproportionately impacts smaller scale operations. Big Bell, Bluebird and Starlight undergrounds have scale and are increasingly operating at, or above, design production levels.

The company says stopping open-pit mining last quarter and planned operational pauses at the smaller Comet and Fender underground mines this quarter does not materially affect its new guidance figure.

Westgold’s flagship Big Bell mine produced a record 272,124 tonnes at 2.6 grams per tonne gold for the June quarter and reached steady state operations whilst Comet contributed 62,236 tonnes at 2.5 g/t over the same period.

The 1.4 million tonne-per-annum Tuckabianna processing plant churned out 24,798 ounces of gold for the June quarter, a quarterly record for the company’s Cue operations.

After reaching steady state in the March quarter, production at the company’s Bluebird underground mine increased 14 per cent over the three months to June 30 to record 83,271 tonnes at 3.3 g/t gold, whilst the Paddy’s Flat underground mine produced 180,520 tonnes at 3.2 g/t for the quarter.

Westgold finished the financial year debt-free and held closing cash and liquid assets of more than $180 million.

Importantly, Westgold Resources says its growth plans are well funded and the company is focused on building a stronger platform from which to achieve long-term growth.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au

About brandsauthority

Check Also

US school shooting kills three kids, three adults

At least three children and three adults have been killed in a shooting at a …

%d bloggers like this: